Sonae (SON) Q2 2024 earnings summary

Executive summary

• Turnover reached €4.3bn in 1H24, up 11.4% year-over-year, driven by retail, MC, Worten, and the integration of Musti.

• MC became the #1 Health, Wellness & Beauty (HWB) platform in Iberia, reinforced by the Druni and Arenal combination.

• EBITDA increased 18% to €410m, supported by MC's performance and equity method results, mainly from NOS.

• Net result (group share) rose to €75m, up 14% year-over-year.

• Significant investments included the acquisition of Musti and BCF Life Sciences, expanding market leadership.

Financial highlights

• Turnover for 1H24 was €4,267m, up 11.4% year-over-year; underlying EBITDA was €342m (+13.8%), and EBITDA reached €410m (+18.2%).

• Net result (group share) for 1H24 was €75m, a 13.6% increase year-over-year.

• NAV slightly declined to €4.5bn, mainly due to lower food retail multiples.

• Free cash flow was impacted by portfolio management and expansion investments, with net debt at €1.7bn at 1H24 end.

• Dividends paid totaled €154m in 1H24.

Outlook and guidance

• MC aims to accelerate expansion of store footprints and omnichannel offerings in Iberia.

• Management remains focused on operational efficiency, value proposition, and capturing synergies for future growth.

• Continued support for portfolio companies and investment in future-proofing businesses.